Construction is underway at a nuclear power plant in Barakah, the United Arab Emirates (UAE). The Korea Electric Power Corp. (KEPCO) signed a $49.4 billion deal Thursday to operate the facility for the next 60 years. Since 2009, KEPCO has been undertaking a $20 billion project to build four reactors in the Middle Eastern nation, in cooperation with local builders and other contractors. It plans to complete the construction by May 2020. / Courtesy of KEPCO

By Lee Hyo-sik

The Korea Electric Power Corp. (KEPCO) said Thursday it has won a $49.4 billion contract to operate a nuclear power plant in Barakah, the United Arab Emirates (UAE), for the next 60 years.

The state-run utility company said the latest deal will help facilitate its campaign to secure additional projects in the UAE, Saudi Arabia, Egypt, Iran and other Middle Eastern countries, which seek to generate electricity in an environmentally sustainable and cost effective manner in the post-oil era.

Since December 2009, KEPCO has been undertaking a $20 billion project to build the Barakah Nuclear Power Plant (BNPP) in the UAE, in cooperation with local builders and other contractors.

Under the agreement, the utility firm has secured exclusive rights to manage and operate four nuclear reactors, which are currently under construction.

BNPP's No. 1 reactor will be operational by May 2017 and the remaining three will go online step by step by May 2020. The reactors are the model 1400, which is the same as the Shin-Gori reactors 3 and 4 in Korea.

"KEPCO will fulfill its obligations by operating BNPP as the most safely managed nuclear power plant in the world," Cho said. "We are glad that KEPCO and its business partners can also take part in managing the four nuclear reactors. We cherish the strong partnership with our UAE partners and seek more ways to strengthen our cooperation."

The CEO said the $49.4 billion contract has raised KEPCO's profile in the global nuclear industry, stressing that it will make inroads into other markets.

"We are happy to see that KEPCO, the world's No. 1 utility company, will manage and operate BNPP for the next 60 years. We will continue to strengthen our partnership with KEPCO and our other Korean business partners," ENEC CEO Hammadi was quoted as saying.

In addition, KEPCO and the Korea Hydro & Nuclear Power Corp. (KHNP) expect to sign a separate contract with ENEC in the near future to dispatch nearly 1,000 nuclear engineers and technicians to the UAE, who will oversee the operation of BNPP, for the next 10 years.

"Operating BNPP for 60 years will be a huge plus for KEPCO when bidding for other nuclear plant projects," a KEPCO official said. "The deal will reenergize Korea's nuclear industry, creating lucrative business opportunities for nuclear plant equipment makers and other businesses."

When completed, BNPP will account for 25 percent of the UAE's power demand, according to KEPCO.

Two local builders ― Hyundai Engineering & Construction and Samsung Construction & Trade ― have been constructing the reactors and other facilities, employing more than 17,000 laborers from the Philippines, Bangladesh, Pakistan, India and other developing countries.

Including 520 from KEPCO and KHNP, more than 3,000 Koreans have been dispatched to the plant site, located in the desert.